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HomeMy WebLinkAboutC34360 Lease Agreement - Portola Community Center Space Number 7k- F CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: AUTHORIZE THE MAYOR TO ENTER INTO ONE-YEAR LEASE AGREEMENT WITH THRIVE ON FOR OFFICE SPACE NO. 7 AT THE PORTOLA COMMUNITY CENTER - Contract No. C34360 SUBMITTED BY: Frankie Riddle, Director of Special Programs APPLICANT: Thrive On C/O Chet Hecht P.O. Box 2828 Palm Desert, CA 92261 DATE: May 14, 2015 CONTENTS: Lease Agreement Recommendation By Minute Motion, authorize the Mayor to enter into a one-year lease agreement with Thrive On for the lease of Office Space No. 7 at the Portola Community Center. Background There are seven office spaces at the Portola Community Center. Six of these office spaces are currently occupied by the Citizens on Patrol Program, the Historical Society, Signature Resources, Incight, and Christopher's Club House. The last remaining office space was previously utilized as a kitchen/small conference room for tenants; however, after speaking with the Facility Coordinator, Sofia Pimentel, and the tenants, it was determined that the space was not being utilized in this capacity. The City was recently approached about leasing office space by Thrive On, a non-profit organization that assists youth, and it was determined that the organization would be a good fit for this space at the facility. As such, staff is proposing that the City enter a one-year lease agreement with Thrive On, from June 1, 2015, through May 31, 2016, at the rate of $2,730 per year, for Space No. 7 at the Portola Community Center. Fiscal Analysis Approval of this lease agreement between the City and Thrive On will bring $2,730 annually to the General Fund. STAFF REPORT THRIVE ON PORTOLA COMMUNITY CENTER LEASE AGREEMENT Contract Nn_ C14160 MAY 14, 2015 PAGE 2 Submitted By: Frankie Riddle Director of Special Programs �JA� Paul S. Gibson Director of Finance Approval: Shn M. Wohlmuth ity Manager Department Head: -Z��,C_ Rudy P. Acosta Assistant City Manager Contract No. C34360 LEASE AGREEMENT This Lease is entered into this 14t" day of May, 2015, by and between the CITY OF PALM DESERT, a municipal corporation (the "Lessor"), and the Thrive On_, a non- profit organization 501 (c) (3) (the "Lessee"). WITNESSETH 1. PREMISES. Lessor hereby leases to Lessee and Lessee hereby hires from Lessor that certain space (the "Leased Space") on the first floor of the building at 45-480 Portola Avenue in the City of Palm Desert, California, commonly known as the Portola Community Center (the "Building"). The Leased Space is more particularly described in Exhibit "B," attached hereto and incorporated herein by this reference. The Leased Space (Office Space No. 7) consists of a total of Two Hundred Twenty Seven and a half (227.5) square feet of office space. 2. TERM. The term of the Lease shall be for a period of one (1) year, commencing June 1, 2015, and continuing thereafter until May 31, 2016, unless terminated earlier as provided in the Lease. 3. AUTOMATIC RENEWAL OF LEASE TERM. Provided that Lessee is not in default hereunder, the Lease term shall be automatically renewed for one-year periods, subject to the same terms and conditions set forth herein. All renewal terms shall commence on the day immediately succeeding the expiration date of the previous Lease term. In the event Lessee does not wish the Lease term to automatically renew, Lessee shall give Lessor not less than sixty (60) days written notice prior to the expiration date of the initial Lease term or the renewal term as the case may be. PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 4. RENT. Lessee shall annually pay to Lessor as and for rent on the Leased Space the sum of Two Thousand Seven Hundred -Thirty dollars (cost breakdown: $1.00 per square foot x 227.5 square feet x 12 months=$2,730.00). Said rent shall be payable on or before the commencement date of this Lease Agreement or any renewal term thereof. 5. USE OF PREMISES. The Leased Space shall be used for general office purposes by Lessee and for no other uses without the prior written consent of Lessor. 6. CONDITION OF RENTAL. Lessee shall at all times during the course of this Lease, or any extension thereof, keep and maintain its tax-exempt status under Internal Revenue Code Section 501(c)(3) or its tax-exempt status as a governmental entity as approved by Lessee. 7. COMMON AREAS OF BUILDING. A. Use of Common Areas. Lessee shall have the nonexclusive right during the term of this Lease to use the common areas of the Building itself, its employees, agents, clients, invitees and licensees. The term "common areas" means the portions of the Building that, at the time in question, have been designated and improved for common use by and for the benefit of more than one Lessee in the Building, including, but not limited to, the parking areas, landscaped area, exterior walks, interior corridors, restrooms, reception area and community room. 8. UTILITIES. A. Lessor's Obligations. Lessor shall, at Lessor's sole cost and expense, provide the following utilities for the Leased Space and Building: water, gas, 2 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 electric, and cable television. Telephone service shall be provided by Lessor only for the reception area of the Building. B. Lessee's Obligations. Lessee shall, at Lessee's sole cost and expense, pay for all telephone service charges, together with any taxes thereon and connection charges, for the Leased Space. 9. STAFFING OF RECEPTION AREA AND SECRETARIAL SERVICES. Lessor shall provide a receptionist to staff the reception area of the building and provide secretarial assistance (except answering the phone) based on square footage of occupied office space. The number of secretarial hours provided for the above listed square footage is 7.7 per month. Said services shall be available Monday through Friday, 8 a.m. to 5 p.m., excluding lunch hours, holidays, and weekends. However, the Lessor's reserve the right to terminate these services at such time as there is a change in the facility operation. 10. FURNISHINGS. A. Lessor's Obligations. Lessor shall provide the following furnishings for the Building: 1. Desks, file cabinets and general office furniture shall be provided in the community room(s). 2. Approximately five (5) banquet tables and fifty (50) stackable chairs shall be provided in the community room (s). B. Lessee's Obligations. Lessee shall provide the following furnishings for the Leased Space and Building: 1. All office furnishings for the Leased Space. 3 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 2. Any additional furniture needed for special events sponsored by Lessee, other than the furniture provided by Lessor in accordance with Section 10A above. 11. MAINTENANCE. A. Lessor's Obligations. Except as otherwise provided herein, Lessor shall, at Lessor's sole cost and expense, perform all outside common area landscape maintenance, all common area Building maintenance, and all common area janitorial maintenance. B. Lessee's Obligations. Except as otherwise provided herein, Lessee shall, at Lessee's sole cost and expense, provide any and all cleaning and janitorial services required in the Leased Space. C. Recycling: Per AB939, the City of Palm Desert is required to divert 50% of its waste from the landfill and implement diversion programs. In order to meet this mandate, the City, all City owned facilities, and contractors performing work for the City, are required to participate in recycling programs, (e.g. chemicals, batteries, electronic waste, construction and demolition waste, bottles, cans, paper, plastic, etc). and all environmental and conservation programs. Therefore, the Lessee agrees to participate in the City of Palm Desert's recycling programs, (office recycling, household hazardous waste, etc.). The City shall provide recycling containers and education to all tenants regarding any existing and future recycling, environmental, and conservation programs. 12. INSPECTION BY LESSOR. Lessee shall permit Lessor or Lessor's agents, representatives or employees to enter the Leased Space at all reasonable times 4 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 for the purpose of inspecting the Leased Space to determine whether Lessee is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect Lessee's interest in the Leased Space under this Lease. 13. ENTRY BY LESSOR. Lessor shall retain a key to the Leased space, so that it may have access to enter the Leased Space (a) in the event of an emergency; (b) to make necessary or agreed repairs and supply necessary or agreed services; and (c) to exhibit the Leased Space to prospective or actual purchasers, mortgagees, tenants, workers or contractors. In the event that Lessee changes the locks to the Leased Space, Lessee shall immediately provide Lessor with a new key so that Lessor can have access to and enter the Leased Space pursuant to this Paragraph. 14. RULES AND REGULATIONS. Lessee shall fully and faithfully comply with and observe all rules and regulations set forth in the Facility Use Agreement, attached hereto as Exhibit "A" and incorporated herein by this reference. 15. INDEMNIFICATION. Except for the sole negligence of Lessor, Lessee shall defend, indemnify and keep and hold the City of Palm Desert, including its officers, employees and agents, their successors and assigns, harmless from any and all costs, liability, damage or expense (including costs of suit and fees and expenses of legal services) claimed by anyone by reason of injury to or death of persons, or damage to or destruction of property, including property of Lessee, sustained in, on or about the demised premises or arising out of the use, occupancy, acts, or omissions of Lessee, its employees and agents, or its contractors, licensees, invites or subtenants, their successors and assigns or arising out of the condition of the property. Lessor shall, by 5 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 appropriate, written notice to Lessee, advise Lessee as soon as practicable regarding any potential liability of Lessee under this Section. 16. INSURANCE SPECIFICATIONS. Without limiting Lessee's indemnification of the City of Palm Desert, and prior to commencement of Lease, Lessee shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City. A. General Liabilitv Insurance. Lessee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. B. Workers' Compensation Insurance. Lessee shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). Lessee shall submit to the City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers, agents, employees, and volunteers. C. Personal Property Insurance. Upon commencement of construction of tenant improvements and betterments, or installation of equipment, with approval of Lessor, Lessee shall obtain and maintain insurance on tenant's improvements and betterments. Policy shall be provided for replacement value on an "all risk" basis. There shall be no coinsurance penalty provision in any such policy. D. Proof of Insurance. Lessee shall provide certificates of insurance 6 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 to Lessor as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by the City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Lessor at all times during the term of this contract. Lessor reserves the right to require complete, certified copies of all required insurance policies, at any time. E. Duration of Coverage. Lessee shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Lessee, his/her agents, representatives, employees, or subconsultants. F. Lessor's Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Lessor has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Lessor will be promptly reimbursed by Lessee. In the alternative, Lessor may cancel this Agreement. G. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. H. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the 7 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 City of Palm Desert, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Lessee or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Lessee hereby waives its own right of recovery against the City of Palm Desert, and shall require similar written express waivers and insurance clauses from each of its subconsultants. I. Enforcement of Contract Provisions (non estoppel). Lessee acknowledges and agrees that any actual or alleged failure on the part of Lessor to inform Lessee of non- compliance with any requirement imposes no additional obligations on Lessor nor does it waive any rights hereunder. J. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. K. Notice of Cancellation. Lessee agrees to oblige its insurance agent or broker and insurers to provide to Lessor with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. L. Additional Insured Status. General liability policies shall provide, or be endorsed to provide, that the City of Palm Desert and its officers, officials, 8 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies. M. Lessor's Right to Revise Specifications. Lessor reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving Lessee ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Lessee, the Lessor and Lessee may renegotiate the Lease Agreement. N. Self -Insured Retentions. Any self -insured retentions must be declared to and approved by Lessor. Lessor reserves the right to require that self - insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by the Lessor. O. Timely Notice of Claims. Lessee shall give Lessor prompt and timely notice of claims made or suits instituted that arise out of, or result from, Lessee's performance under this Agreement and that involve, or may involve, coverage under any of the required liability policies. P. Additional Insurance. Lessee shall also procure and maintain at its own cost and expense, any additional kinds of insurance, which in its own judgment, may be necessary for its proper protection. 17. SUBLETTING AND ASSIGNMENTS. Lessee shall not assign or sublease this Lease, or any interest therein, without first obtaining the prior written consent of Lessor. 9 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 18. DESTRUCTION OF PREMISES. In the event the Building is damaged or destroyed by fire, flood, explosion, earthquake, public enemy, riot, civil commotion or act of God, Lessor shall repair the Building with due diligence. The rent payable under the Lease shall be abated from the date of damage until the completion of the repairs. Notwithstanding the foregoing, if the Leased Space of Building cannot be repaired within six months from the date of the event causing the damage, Lessor or Lessee may elect to terminate the Lease by giving the other party written notice within thirty (30) days after the event causing the damage or destruction. 19. TERMINATION OF LEASE. Except as otherwise provided herein, Lessee or Lessor may terminate this Lease at any time after giving sixty (60) days prior written notice to the other party. In the event Lessor terminates this Lease prior to the completion of any Lease term, Lessor shall refund to Lessee the prorated share of rent paid by Lessee for the remaining Lease term. In the event Lessee terminates this Lease prior to the completion of any Lease term, Lessor shall not refund to Lessee any prorated share of rent paid by Lessee for the remaining Lease term. 20. DEFAULT IN PERFORMANCE BY TENANT. The failure by Lessee to observe and perform any provision of this Lease to be performed or observed by it shall constitute a default and breach of this Lease when that failure continues for thirty (30) days after written notice of Lessee's failure is given by Lessor; provided, however, that if the nature of the default is such that it cannot be cured within said thirty (30) day period, Lessee shall not be deemed to be in default if Lessee commences that cure within the thirty (30) day period and thereafter diligently proceeds to completely cure the default. 21. MISCELLANEOUS. 10 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 A. Governinq Law. This Lease shall be governed by and interpreted under the laws of the State of California. B. Bindinq on Successors. The covenants, conditions and agreements of this Lease shall be binding upon and shall inure to the benefit of the representatives, successors and assigns of the parties hereto. C. Entire Agreement. This Lease contains the entire agreement between the parties, and supersedes any prior or written statements or agreements between the parties hereto. D. Waiver of Breach. The waiver of Lessor of any breach by Lessee of any provision of this Lease shall not constitute a continuing waiver or a waiver of any subsequent default or breach of Lessee either of the same or a different provision of this Lease. E. Notices. Except as otherwise provided by law, any and all notices or communications required or permitted by this Lease or by law to be served on or given to either party to this Lease by the other party shall be in writing, and shall be deemed served and given when deposited in the United States mail, first-class postage prepaid, addressed as follows: LESSOR: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 LESSEE: Chet Hecht Thrive On P.O. Box 2828 Palm Desert, CA 92260 F. Attorneys' Fees. In the event of any controversy, claim or dispute between the parties, hereto, arising out of or relating to this Lease, or breach thereof, Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 the prevailing party shall be entitled to recover from the other party all reasonable expenses, attorneys' fees and costs, including the cost of enforcing any judgment contained in such action. G. Severability. If any portion of this Lease is declared by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions of this Lease shall remain in full force and effect. H. Counterparts. This Lease may be signed in counterparts, each of which shall constitute an original and which shall collectively refer to one instrument. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. LESSOR: CITY OF PALM DESERT By: SUSAN MARIE WEBER, MAYOR LESSEE: By: ATTEST: C-�C r CG T Print Name: RACHELLE D. KLASSEN, CITY CLERK Title: 12 Updated 5/14/14 PORTOLA COMMUNITY CENTER THRIVE ON LEASE AGREEMENT FOR OFFICE SPACE #7 EXHIBIT "B" PORTOLA COMMUNITY CENTER LEASED SPACE AND SECRETARIAL SERVICES The Lease Space (office space number) and the associated secretarial service hours for each within the Portola Community Center are listed below: 1. Office Space Number 1: 132 sq. ft. x .04 hrs/month = 5.28 hrs per month 2. Office Space Number 2: 155 sq. ft. x .04 hrs/month = 6.2 hrs per month 3. Office Space Number 3: 130 sq. ft. x .04 hrs/month = 5.2 hrs per month 4. Office Space Number 4: 130 sq. ft. x .04 hrs/month = 5.2 hrs per month 5. Office Space Number 5: 128 sq. ft. x .04 hrs/month = 5.12 hrs per month 6. Office Space Number 6: 130 sq. ft. x .04 hrs/month = 5.2 hrs per month 7. Office Space Number 7: 227.5 sq. ft. x .04 hrs/month = 9.1 hrs per month 8. Office Space Number 8: 192.5 sq. ft. x .04 hrs/month = 7.7 hrs per month Note: Secretarial services shall be provided by the facility manager/coordinator. Scheduling and tracking of services will be maintained by the facility manager/coordinator. (Hours shall be rounded up if over .50 and down if under .50) 13 Updated 5/14/14 CALIFORNIA• • •. C..c�..::. • . • ,-•.T..s... • .'..s�..a.....�.: •ram.. s�..ac.:.• < .., s�..s..!::.!::c!:�t .....::.!::.!.:<. s.<!a.-�.�:.!::...:< <r�r.:...::.!s:•!�.•!: •rs�t.:�.. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California! ) County of �J- - On /`i 15 before me,! l—� ebc,'LAh ansma, NAnrii Pub/1'C'. Date ; I I Here Insert Name and Title of the Officer personally appeared Name(s) of Signer who proved to me on the basis of satisfactory evidence to be the person(s) whose name is subscribed to the within instrument and acknowledged to me that &swe #te_y executed the same in &rherftJaeir authorized capacity(ie5); and that by(jj�Yherftheir signatureWon the instrument the person($j,- or the entity upon behalf of which the person(5pacted, executed the instrument. EEO = L. JAMMA l Cow~N sloe 11999432 Nobly Pub k - California RirK" Cawity CaaaM. No 29.2016 Q_ - - __ - - - - - - - - - - - I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signatures _ j Signature of NotarlPublic NO f�.4; y �,� /� C Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: __ Lea5e:, e_emen+._. Document Date: Number of Pages: �3 Signer(s) Other�n Named Above: _ Jj" L) a Ha. r Capacity(ies) Claimed by Signers) Signer's Name: _..,._ Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: Signer's Name: Corporate Officer — Title(s): Partner — Limited General Individual Attorney in Fact Trustee Guardian or Conservator Other: Signer Is Representing: